- Polygon price action dips below $1.572 briefly in early morning trading.
- MATIC price refrains from further correction and could see bulls sitting on their hands to increase the price.
- Expect to see a bullish reversal once US equities kick in with further gains.
Polygon (MATIC) price action saw a not-so-pleasant rejection on bulls past Saturday as $1.75 proved to be too much defended by bears and pushed MATIC price back below the 200-day Simple Moving Average (SMA). As MATIC looks to heading for the second day of losses, the Relative Strenght Index (RSI) is showing a bullish divergence, with bulls and investors buying the correction. As this trading week kicks off, expect investors to start the week on a front footnote with Asian and European equities in the green.
MATIC will see traders on the front foot with a fresh view
Polygon price action was one of the cryptocurrencies that were a bit of an outlier last week, with price action going up where most cryptocurrencies were on the back foot. Unfortunately, the mood changed over the weekend as bulls got rejected from further upside potential at $1.75. The S1 monthly support a few cents below is now so chopped up it is not worth anymore as a reference in the trading plan.
Although MATIC price looks heavy this morning with a breach below $1.57, risk-on seems to be the theme in global markets. The RSI reflects an uptick towards 50, while MATIC price action is trading lower. This means bulls are buying, but it is not reflected in the price. Expect once bulls start to build up further, acceleration will be seen by an uptick in price action and could see back $1.75 today or tomorrow. Should this uptrend continue throughout the week, even $2.00 could be in the cards if risk-on is continuously omnipresent in the markets.
MATIC/USD daily chart
On the other hand, Polygon price action is so dependent on the risk mode in markets that another volatile week could see investors turn their backs towards cryptocurrencies for now. With that, the demand side would start to dry up and see MATIC price dip back towards $1.40, with $1.20 as a significant support level in the near term. Depending on the longevity of the correction, possibly $1.06 could be tested in the process before rebounding.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin: Retraces to around $75,000 after hitting new all-time high
Bitcoin (BTC) edges slightly down on Thursday and trades at around $74,900 after hitting a new all-time high (ATH) of $76,400 on Wednesday, buoyed by the victory of the crypto-friendly candidate Donald Trump in the US presidential election.
Ethereum price jump spurs most significant ETF inflows in six weeks
After a positive momentum in crypto markets following the outcome of the US presidential election, spot Ether exchange-traded funds (ETFs) in the United States saw their highest inflows in six weeks.
Top trending meme coins PEPE, BONK, and FLOKI achieve double-digit gains following Trump’s victory
The prices of top trending meme coins Pepe (PEPE), Bonk (BONK) and FLOKI (FLOKI) experienced double-digit gains following Trump’s victory on Wednesday. The technical outlook suggests that the three meme coins hover around key levels, and the breakout could push these coins higher.
Coinbase’s Paul Grewal urges SEC to embrace change on crypto after Trump's victory
Paul Grewal, Coinbase's Chief Legal Officer, has asked the US Securities & Exchange Commission to reconsider how it regulates cryptocurrencies now that Donald Trump has been elected to a second term as president.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.